I did a search on Google for "Tampa Bay Area Foreclosures"
One of the buyer calls I took yesterday on one of the 32 homes I have for sale in the Tampa Bay area was from an investor. Typical conversation, he asked a couple questions and I asked a coupe qualifying questions and we ended up where every call eventually leads. He asked "how much is the property listed for?" I gave him the answer and by the way, the property is priced correctly for our market. His answer is what inspired this blog. So the conversation goes, the investors response was "that doesn't fit our model, we are looking for homes at 55 cents on the dollar." By the way, if you are a home flipper that follows this model, you might want to stop reading right now. However, if you are a home owner behind on your mortgage or if you own Real Estate that you need to sell quickly, please keep reading.
We have all seen signs and advertisements from investors offering to "buy our home for cash with a quick closing." Well, my position on this may not make my phone ring with investor buyers but my integrity and ethics are more important than money. My question is "why would you sell your home for 50 cents on the dollar even if you had to sell right now. I could list and sell your home in less than 30 days at 90% of market value. That is still a great deal and it will sell quickly. We are in a sellers market in most parts of The Tampa Bay area and even the homes that are priced at market value are selling in less than 90 days. Even if we had to drop the price drastically in order to sell right now, wouldn't you rather get 70% of market value than 50 cents on the dollar?
The investor went on to talk about how many homes he has bought in the past year and either flipped (fixed up resold) for a large profit or is holding and renting. Don't get me wrong, I am 100% for making a profit and being profitable. I just don't believe someone has to lose in order for me to win.
In closing, there is another misconception I would like address on this subject. When a property is being sold as a short sale, the bank is NOT going to approve a sale price at 50% of market value. And, if the property has been foreclosed and is now a bank Owned property being sold by a Realtor, the bank is NOT going to sell for 50% of market value. If you are a buyer looking for a "great deal" my best advice would be find a Realtor you feel you can trust that will show you the best properties on the market right now that are priced correctly. If you can buy at 95% of the asking price, you are getting a great deal based on what that home would have sold for at the peak.
If you have a home you need to sell, PLEASE don't give it away! Please call John Dietz at 727-451-3530. I sold 127 homes in 2013 at an average of 97% of the asking price.
John Dietz With The Dietz Team At Re/Max www.dietzteam.com